- The potential delay in the expected launch following a potential SEC approval is due to the two-step process involved in launching an ETF.
- So far, out of the 12 Bitcoin ETF applications, nine have submitted amended prospectuses showing that they’ve been in communication with the Division of Corporation Finance.
- Market analysts believe that if the SEC approves the 19b-4 before the prospectus documents are signed, the launch of the Bitcoin ETF might be delayed.
ETF analysts say that even if spot Bitcoin ETFs are approved by the SEC, the launch of these ETFs will be delayed: Here are the details!
Even If Bitcoin ETF Is Approved, It May Not Be Launched Immediately
When the United States Securities and Exchange Commission’s (SEC) first window for approval of a spot Bitcoin Exchange-Traded Fund (ETF) opens, analysts have noted that even if the SEC approves a spot Bitcoin exchange-traded fund, the actual launch could take a month.
The potential delay in the expected launch following a potential SEC approval is due to the two-step process involved in launching an ETF. To launch a Bitcoin ETF, an issuer needs SEC approval from both the Trading and Markets division on the 19b-4 application and from the Division of Corporation Finance on the S-1 application or prospectus.
The Division of Corporation Finance primarily focuses on fund operations details and risk disclosures. So far, out of the 12 Bitcoin ETF applications, nine have submitted amended prospectuses showing that they’ve been in communication with the Division of Corporation Finance.
Market analysts believe that if the SEC approves the 19b-4 before the prospectus documents are signed, the launch of the Bitcoin ETF might be delayed. Bloomberg ETF analyst James Seyffart mentioned that even if the 19b-4 is approved, there could be weeks or months between approval and the launch.
SEC’s 8-Day Window
The SEC has an 8-day window to approve the first spot Bitcoin ETF, starting on November 9 and ending on November 17. While market experts have increased their approval odds to as high as 90%, they believe it won’t happen until early next year. The SEC had extended the comment period for the spot Bitcoin ETF until November 8.
The race for a spot Bitcoin ETF in the United States began with the application from BlackRock, the world’s largest asset manager. Fidelity and several other asset managers also applied for spot Bitcoin ETFs, but most of their applications were denied or withdrawn. However, the 2023-2024 period has led many market observers to predict a possible approval for a spot ETF, indicating approval odds as high as 90%.
